Question
Calculate the effective yield from a Chilean peso deposit with an interest rate of 10% p.a. and forecasted exchange rate changes with the following probability
Calculate the effective yield from a Chilean peso deposit with an interest rate of 10% p.a. and forecasted exchange rate changes with the following probability of occurrence:
Percentage Change Probability of Occurrence
-8% 20%
-4% 20%
+2% 60%
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
